NEWS
IN BRIEF
SI Group in China JV
SI Group has formed a joint venture with Shengxiao Group, a Chinese specialist in liquid crystal polymer( LCP) monomers and speciality chemicals, to bring on additional biphenol capacity in China. Biphenol is used as a monomer in LCPs, polyphenylenesulfone and other applications. The two companies supply the chemical to Shengnova Advanced Materials, using SI’ s proprietary technology and Shengxiao’ s manufacturing assets.
Elementis exits pharma
Elementis has completed the sale of its pharmaceutical manufacturing business to Associated British Foods for a net value of about € 30 million, which will be returned to shareholders. The company said that this supports its strategic objectives, repositioning it as“ a pureplay speciality chemicals leader focused on value-added specialty additives in the personal care and coatings markets”, and will improve its operating margins.
Ineos sells Calabrian
Ineos Enterprises has completed the sale of Ineos Calabrian to Ecovyst for $ 190 million. Ineos Calabrian makes ultra-pure sulphur dioxide and related derivatives for mining, water treatment and speciality chemical applications from facilities in Port Neches, Texas, and Timmins, Ontario. During ten years of ownership, Ineos Enterprises claimed, it has“ delivered significant improvements in safety, operational performance and financial results”.
Syensqo begins review
Syensqo has begun a strategic review of its Performance & Care segment as part of its aim of becoming a pureplay speciality materials and advanced technology company with greater exposure to markets like aerospace, electronics, healthcare and energy. The segment, comprising the Novecare and Technology Solutions business units, is active in surface chemistry and speciality reagents for the consumer care, agro, coatings and mining markets.
Olin and Huntsman to merge
Olin and Huntsman have entered into a definitive agreement to combine in an all-stock merger of equals that will create a new chemicals player with sales of about $ 12 billion / year. Both boards have approved and the deal is expected to close in Q1 2027, subject to customary closing conditions, regulatory approvals and the approval of both sets of shareholders.
OlinHuntsman, the two firms said,“ will benefit from enhanced scale, scope and expanded chlorine optionality, enabling it to create value across markets and cycles”. They added that the integration of their respective upstream and downstream businesses“ brings together cost-advantaged North American assets and feedstocks with differentiated formulations and high-value advanced materials”.
Over $ 300 million of cost synergies and integration benefits have already been identified that are expected to be realised within three years. The companies have also identified an additional $ 100 million of raw material integration benefits from 2031 and about $ 125 million of cash tax benefits through the acceleration of net operating losses.
Key target markets include automotive, construction and infrastructure, and industrial applications. OlinHuntsman claims that it will have a structurally lower cost position and an expanded ability to convert advantaged electrochemical units production into downstream materials, unlocking more opportunities to grow.
Ken Lane, president and CEO of Olin, will be CEO of the new firm, with Huntsman CEO Peter Huntsman becoming nonexecutive chairman. Current Huntsman CFO Phil Lister will be CFO of the combined company; Olin CFO Todd Slater will become the chief integration officer. There will be a ten-member board, with five from each company.
Axplora is to consolidate manufacture of the bile acid ursodeoxycholic acid( UDCA) at Vizag, India. Production will transition from the site in Gropello Cairoli, Italy, by the end of 2026. This follows a decision to expand UDCA capacity at Vizag and create a fully integrated production platform from bile sourcing to API manufacturing. UDCA is widely used as an API in drugs for chronic liver and gallbladder diseases. Axplora makes it via a proprietary enzymatic synthesis route, reducing process steps and minimising the use of solvents and reagents.
8 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981